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Rupee weakens on heavy selling in domestic equities

08 Jul 2019 Evaluate

Indian rupee weakened against the US dollar on Monday, due to heavy selling in domestic equities and foreign fund outflows. Foreign institutional investors (FIIs) were net sellers in the capital markets, pulling out Rs 89.38 crore Friday, while domestic institutional investors bought shares worth Rs 275.63 crore, as per provisional data. However, easing crude oil prices restricted the rupee's decline. On the global front, the dollar rose broadly on Monday after strong US jobs growth in June suggested the Federal Reserve will not aggressively cut interest rates later this month. US nonfarm payrolls rebounded in June to 224,000, the most in five months, data showed on Friday, beating economists’ consensus estimate of 160,000.

The partially convertible currency is currently trading at 68.64, weaker by 22 paise from its previous close of 68.42 on Friday. The currency touched a high and low of 68.6500 and 68.4900 respectively. The reference rate for the dollar stood at 68.74 and for Euro stood at 77.51 on July 05, 2019. While the reference rate for the Yen stood at 63.70, the reference rate for the Great Britain Pound (GBP) stood at 86.50.

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